The company’s quarterly earnings conference call
will be held at 8:30 a.m. ET today. Participants may dial 800-938-1120
in the U.S. or Canada (706-634-7849 internationally) and provide the
following ID: 71692129 or may listen via the Internet at www.sprint.com/investors.

Additional information about results can be found
in the “Quarterly Investor Update” posted on our Investor Relations
website at www.sprint.com/investors.

Financial results in the enclosed tables include a
predecessor period for the quarter ending June 30, 2013 related to the
results of operations of Sprint Communications, Inc. (formerly Sprint
Nextel) prior to the closing of the SoftBank transaction on July 10,
2013, and the applicable successor periods. In order to present
financial results in a way that offers investors a more meaningful
comparison of the year-over-year quarterly results, we have combined the
calendar second quarter 2013 results of operations for the predecessor
and successor periods. The enclosed remarks relating to calendar second
quarter of 2013 are in reference to an unaudited combined period, unless
otherwise noted. For additional information, please reference the
section titled Financial Measures. Trended financial performance metrics
on a combined basis can also be found at our Investor Relations website
at www.sprint.com/investors.

July 30, 2014 07:30 AM Eastern Daylight Time

OVERLAND PARK, Kan.--(BUSINESS WIRE)--Sprint Corporation (NYSE:S) today reported operating results for
the first fiscal quarter of 2014, including net income of $23 million,
the best performance in almost seven years when excluding the non-cash
transaction-related impacts from last year, and consolidated operating
income of $519 million, the highest in more than seven years.

“We reached several key milestones for the company this quarter,
including largely completing a multi-year project to upgrade our core 3G
and voice network, expanding 4G LTE coverage to approximately 254
million people and launching nationwide availability of HD Voice,” said
Dan Hesse, Sprint CEO. “Our complete network replacement impacted the
network experience, so we lost customers last quarter. To improve
customer confidence given our recent network build progress, we launched
the Sprint Satisfaction Guarantee, which invites customers to experience
our new and improved network and enjoy the value of our Sprint Framily
plans.”

Adjusted EBITDA* Shows Solid Year-Over-Year Growth

Adjusted EBITDA* of $1.83 billion grew 30 percent over the prior year
period and Adjusted EBITDA* margin of nearly 24 percent was the
company’s best in six years. Wireless Adjusted EBITDA* of $1.8 billion
increased nearly 40 percent from the prior year period, driven mostly by
lower expenses across several areas of the business, partially offset by
declining wireless service revenues. Lower postpaid subsidy costs
associated with impacts of the Sprint Easy Pay installment billing plan
and device sales mix as well as lower customer care and cost of service
expenses all contributed to year-over-year growth in Wireless Adjusted
EBITDA* of nearly $500 million.

Sprint Platform Subscriber Loss Improves

The Sprint platform reported a net loss of 220,000 customers in the
quarter, compared to a net loss of 383,000 customers last quarter and
520,000 customers in the prior year period. Sprint platform postpaid net
losses of 181,000 during the quarter were largely due to expected
elevated churn levels related to service disruption associated with the
company’s ongoing network overhaul. However, Sprint platform postpaid
gross additions grew by 16 percent compared to the year-ago quarter, and
retail smartphone sales were nearly 5 million, representing a record 87
percent of total retail handset device sales in the quarter. Sprint
platform prepaid net loss of 542,000 customers was primarily caused by
the timing of the annual Lifeline program recertification process that
impacted the Assurance Wireless® subscriber base. Sprint
added 503,000 wholesale and affiliate customers during the quarter. The
Sprint platform served over 53 million subscribers at the end of the
quarter.

Network Deployment Reaches Key Milestones

Sprint’s replacement of its entire 3G and voice network, one of the most
complex network upgrades in history, is largely complete and network
performance metrics continue to improve. Sprint also hit its mid-year
target for 4G LTE coverage, as the company now covers approximately 254
million people in 488 cities across the country including Pittsburgh and
Buffalo, N.Y., which launched today.

Sprint HD Voice service is also now available nationwide and represents
the new Sprint standard for crystal-clear voice calls. Sprint’s HD Voice
provides fuller, more natural-sounding voice, plus noise-cancelling
technology that virtually eliminates background noise from places like
busy roads or crowded restaurants1. Over 16 million customers
currently have HD Voice-enabled devices.

The deployment of Sprint Spark™, an innovative combination of advanced
network and device technology that leverages the company’s 800MHz,
1.9GHz and 2.5GHz spectrum, continues to progress and is now available
in 27 markets across the country. Twenty-two Sprint Spark-capable
devices are currently available, including the recently launched Samsung
Galaxy S® 5 Sport, LG G3, and HTC One (M8) Harman/Kardon®
edition.

In June, the company announced the Sprint Satisfaction Guarantee,
providing wireless users a worry-free experience of Sprint’s improved
network, exclusive Framily plan and unique services. If customers aren’t
completely satisfied with the Sprint experience within the first 30
days, Sprint will refund the cost of their device and waive all service
and activation charges.

According to results from the 2014 American Customer Satisfaction Index
released in May, Sprint is the most improved U.S. company in customer
satisfaction, across all 43 industries, over the last six years.
Additionally, Light Reading recognized Sprint with a 2014 Leading
Lights Award in the category of Most Innovative 4G Service for Sprint
Spark. Sprint was also the winner of the Informa Telecoms & Media MVNO’s
Industry Awards Best Wholesale Operator for the second consecutive year.

Sprint also received multiple awards for its corporate responsibility
efforts during the quarter. Sprint was recognized by the Department of
Energy for achievements in the Better Buildings Challenge for energy
reduction, and the Environmental Protection Agency recognized Sprint
with the WasteWise National Partner of the Year Award for Very Large
Companies for diverting solid waste from landfills. Additionally, Sprint
received the VITA Achievement Award for Environmental Sustainability
from the Wireless Foundation.

Forecast

The company continues to expect calendar 2014 Adjusted EBITDA* to be
between $6.7 billion and $6.9 billion.

Wireless Operating Statistics (Unaudited)

Quarter To Date

6/30/14

3/31/14

6/30/13

Net (Losses) Additions (in thousands)

Sprint platform:

Postpaid (3)

(181

)

(231

)

194

Prepaid (4)

(542

)

(364

)

(486

)

Wholesale and affiliate

503

212

(228

)

Total Sprint platform

(220

)

(383

)

(520

)

Nextel platform:

Postpaid (3)

-

-

(1,060

)

Prepaid (4)

-

-

(255

)

Total Nextel platform

-

-

(1,315

)

Transactions:

Postpaid (3)

(64

)

(102

)

(179

)

Prepaid (4)

(77

)

(51

)

(20

)

Wholesale

27

69

-

Total transactions

(114

)

(84

)

(199

)

Total retail postpaid net losses

(245

)

(333

)

(1,045

)

Total retail prepaid net losses

(619

)

(415

)

(761

)

Total wholesale and affiliate net additions (losses)

530

281

(228

)

Total Wireless Net Losses

(334

)

(467

)

(2,034

)

End of Period Subscribers (in thousands)

Sprint platform:

Postpaid (3)

29,737

29,918

30,451

Prepaid (4)

14,715

15,257

15,215

Wholesale and affiliate

8,879

8,376

7,710

Total Sprint platform

53,331

53,551

53,376

Nextel platform:

Postpaid (3)

-

-

-

Prepaid (4)

-

-

-

Total Nextel platform

-

-

-

Transactions: (a)

Postpaid (3)

522

586

173

Prepaid (4)

473

550

39

Wholesale

227

200

-

Total transactions

1,222

1,336

212

Total retail postpaid end of period subscribers

30,259

30,504

30,624

Total retail prepaid end of period subscribers

15,188

15,807

15,254

Total wholesale and affiliate end of period subscribers

9,106

8,576

7,710

Total End of Period Subscribers

54,553

54,887

53,588

Supplemental Data - Connected Devices

End of Period Subscribers (in thousands)

Retail postpaid

988

968

798

Wholesale and affiliate

4,192

3,882

3,057

Total

5,180

4,850

3,855

Churn

Sprint platform:

Postpaid

2.05

%

2.11

%

1.83

%

Prepaid

4.44

%

4.33

%

5.22

%

Nextel platform:

Postpaid

-

-

33.90

%

Prepaid

-

-

32.13

%

Transactions: (a)

Postpaid

4.15

%

5.48

%

26.64

%

Prepaid

6.28

%

5.11

%

16.72

%

Total retail postpaid churn

2.09

%

2.18

%

2.63

%

Total retail prepaid churn

4.50

%

4.35

%

5.51

%

Nextel Platform Subscriber Recaptures

Subscribers (in thousands) (5):

Postpaid

-

-

364

Prepaid

-

-

101

Rate (6):

Postpaid

-

-

34

%

Prepaid

-

-

39

%

(a)

We acquired approximately 352,000 postpaid subscribers and 59,000
prepaid subscribers through the acquisition of assets from U.S.
Cellular when the transaction closed on May 17, 2013. We acquired
approximately 788,000 postpaid subscribers, 721,000 prepaid
subscribers, 93,000 wholesale subscribers and transferred 29,000
Sprint wholesale subscribers that were originally recognized through
our Clearwire MVNO arrangement to Transactions postpaid subscribers
as a result of the Clearwire acquisition when the transaction closed
on July 9, 2013.

Wireless Operating Statistics (Unaudited) (continued)

Successor

Predecessor

QuarterToDate

QuarterToDate

QuarterToDate

6/30/14

3/31/14

6/30/13

ARPU (b)

Sprint platform:

Postpaid

$

62.07

$

63.52

$

64.20

Prepaid

$

27.38

$

26.45

$

26.96

Nextel platform:

Postpaid

$

-

$

-

$

36.66

Prepaid

$

-

$

-

$

34.48

Transactions: (a)

Postpaid

$

39.16

$

37.26

$

59.87

Prepaid

$

45.15

$

43.80

$

19.17

Total retail postpaid ARPU

$

61.65

$

62.98

$

63.59

Total retail prepaid ARPU

$

27.97

$

27.07

$

27.02

(a)

We acquired approximately 352,000 postpaid subscribers and 59,000
prepaid subscribers through the acquisition of assets from U.S.
Cellular when the transaction closed on May 17, 2013. We acquired
approximately 788,000 postpaid subscribers, 721,000 prepaid
subscribers, 93,000 wholesale subscribers and transferred 29,000
Sprint wholesale subscribers that were originally recognized through
our Clearwire MVNO arrangement to Transactions postpaid subscribers
as a result of the Clearwire acquisition when the transaction closed
on July 9, 2013.

(b)

ARPU is calculated by dividing service revenue by the sum of the
average number of subscribers in the applicable service category.
Changes in average monthly service revenue reflect subscribers for
either the postpaid or prepaid service category who change rate
plans, the level of voice and data usage, the amount of service
credits which are offered to subscribers, plus the net effect of
average monthly revenue generated by new subscribers and
deactivating subscribers.

Current portion of long-term debt, financing and capital lease
obligations

807

991

Total current liabilities

9,436

9,698

Long-term debt, financing and capital lease obligations

31,687

31,787

Deferred tax liabilities

14,268

14,207

Other liabilities

3,664

3,685

Total liabilities

59,055

59,377

Shareholders' equity

Common shares

39

39

Paid-in capital

27,383

27,354

Accumulated deficit

(2,015

)

(2,038

)

Accumulated other comprehensive loss

(43

)

(43

)

Total shareholders' equity

25,364

25,312

Total

$

84,419

$

84,689

NET DEBT* (NON-GAAP) (Unaudited)

(Millions)

Successor

6/30/14

3/31/14

Total Debt

$

32,494

$

32,778

Less: Cash and cash equivalents

(4,171

)

(4,970

)

Less: Short-term investments

(1,322

)

(1,220

)

Net Debt*

$

27,001

$

26,588

SCHEDULE OF DEBT (Unaudited)(Millions)

6/30/14

ISSUER

COUPON

MATURITY

PRINCIPAL

Sprint Corporation

7.25% Notes due 2021

7.250%

09/15/2021

$ 2,250

7.875% Notes due 2023

7.875%

09/15/2023

4,250

7.125% Notes due 2024

7.125%

06/15/2024

2,500

Sprint Corporation

9,000

Sprint Communications, Inc.

Export Development Canada Facility (Tranche 2)

3.579%

12/15/2015

500

6% Senior Notes due 2016

6.000%

12/01/2016

2,000

9.125% Senior Notes due 2017

9.125%

03/01/2017

1,000

8.375% Senior Notes due 2017

8.375%

08/15/2017

1,300

9% Guaranteed Notes due 2018

9.000%

11/15/2018

3,000

7% Guaranteed Notes due 2020

7.000%

03/01/2020

1,000

7% Senior Notes due 2020

7.000%

08/15/2020

1,500

11.5% Senior Notes due 2021

11.500%

11/15/2021

1,000

9.25% Debentures due 2022

9.250%

04/15/2022

200

6% Senior Notes due 2022

6.000%

11/15/2022

2,280

Sprint Communications, Inc.

13,780

Sprint Capital Corporation

6.9% Senior Notes due 2019

6.900%

05/01/2019

1,729

6.875% Senior Notes due 2028

6.875%

11/15/2028

2,475

8.75% Senior Notes due 2032

8.750%

03/15/2032

2,000

Sprint Capital Corporation

6,204

Clearwire Communications LLC

14.75% First-Priority Senior Secured Notes due 2016

14.750%

12/01/2016

300

8.25% Exchangeable Notes due 2040

8.250%

12/01/2040

629

Clearwire Communications LLC

929

EKN Secured Equipment Facility ($1 Billion)

2.030%

03/30/2017

762

Tower financing obligation

6.092%

09/30/2021

314

Capital lease obligations and other

2015 - 2023

171

TOTAL PRINCIPAL

31,160

Net premiums

1,334

TOTAL DEBT

$ 32,494

Supplemental information:

The Company had $2.4 billion of borrowing capacity available under
our unsecured revolving bank credit facility as of June 30, 2014.
Our unsecured revolving bank credit facility expires in February
2018.

Certain wholly-owned subsidiaries of the Company had an accounts
receivable facility with a maximum funding limit of $1.3 billion as
of June 30, 2014. The facility was undrawn as of June 30, 2014. The
accounts receivable facility expires in May 2016.

In May 2012, certain of our subsidiaries entered into a $1.0 billion
secured equipment credit facility to finance equipment-related
purchases from Ericsson for Network Vision. The facility was fully
drawn at the end of 2013, and a balance of $762 million principal
amount was outstanding as of June 30, 2014. Repayments of remaining
principal are due semi-annually in equal installments, along with
corresponding payments of interest and fees, each March and
September, with the final payment due upon maturity in March of 2017.

NOTES TO THE FINANCIAL INFORMATION (Unaudited)

(1)

Except for the quarter-to-date June 30, 2014 and March 31, 2014
periods, financial results include a Predecessor period from January
1, 2012, through the closing of the SoftBank transaction on July 10,
2013, and a Successor period from October 5, 2012 through December
31, 2013. In order to present financial results in a way that offers
investors a more meaningful calendar period-to-period comparison, we
have combined results of operations and cash flows for the
Predecessor and Successor periods for the three-month period ended
June 30, 2013. (See Financial Measures for further information)

(2)

Capital expenditures is an accrual based amount that includes the
changes in unpaid capital expenditures and excludes capitalized
interest. Cash paid for capital expenditures includes total
capitalized interest of $12 million for the successor
quarter-to-date June 30, 2014 period and $13 million for the
predecessor quarter-to-date June 30, 2013 period and can be found in
the Condensed Consolidated Cash Flow Information and the
Reconciliation to Free Cash Flow*.

(3)

Postpaid subscribers on the Sprint platform are defined as retail
postpaid devices with an active line of service on the CDMA network,
including subscribers utilizing WiMax and LTE technology. Postpaid
subscribers previously on the Nextel platform are defined as retail
postpaid subscribers on the iDEN network, which was shut-down on
June 30, 2013. Postpaid subscribers from transactions are defined as
retail postpaid subscribers acquired from U.S. Cellular in May 2013
and Clearwire in July 2013 who had not deactivated or been
recaptured on the Sprint platform. During the quarter-to-date June
30, 2014 period, the Sprint platform subscriber results included
approximately 535,000 tablet net adds, which generate a
significantly lower ARPU than other postpaid subscribers.

(4)

Prepaid subscribers on the Sprint platform are defined as retail
prepaid subscribers and session-based tablet users who utilize the
CDMA network and WiMax and LTE technology via our multi-brand
offerings. Prepaid subscribers previously on the Nextel platform are
defined as retail prepaid subscribers who utilized the iDEN network,
which was shut-down on June 30, 2013. Prepaid subscribers from
transactions are defined as retail prepaid subscribers acquired from
U.S. Cellular in May 2013 and Clearwire in July 2013 who had not
deactivated or been recaptured on the Sprint platform.

(5)

Nextel Subscriber Recaptures are defined as the number of
subscribers that deactivated service from the postpaid or prepaid
Nextel platform, as applicable, during each period but remained with
the Company as subscribers on the postpaid or prepaid Sprint
platform, respectively. Subscribers that deactivated service from
the Nextel platform and activated service on the Sprint platform are
included in the Sprint platform net additions for the applicable
period.

(6)

The Postpaid and Prepaid Nextel Recapture Rates are defined as the
portion of total subscribers that left the postpaid or prepaid
Nextel platform, as applicable, during the period and were retained
on the postpaid or prepaid Sprint platform, respectively.

(7)

Severance and lease exit costs are primarily associated with work
force reductions and exit costs associated with the Nextel platform
and those related to exiting certain operations of Clearwire.

(8)

For the quarter-to-date March 31, 2014 period, asset impairment
activity is primarily due to network equipment assets that are no
longer necessary for management's strategic plans.

(9)

For the quarter-to-date June 30, 2013 period, included in selling,
general and administrative expenses are fees paid to unrelated
parties necessary for the transactions with SoftBank and our
acquisition of Clearwire.

*FINANCIAL MEASURES

On July 9, 2013, Sprint Communications, Inc. (formerly Sprint Nextel
Corporation) completed its acquisition of Clearwire. On July 10, 2013 we
consummated the SoftBank Merger with Starburst II, which immediately
changed its name to Sprint Corporation (now referred to as the Company
or Sprint). As a result of these transactions, the assets and
liabilities of Sprint Communications, Inc. and Clearwire were adjusted
to fair value on the respective closing dates. The Company's financial
statement presentations herein distinguish between a predecessor period
relating to Sprint Communications, Inc. for periods prior to the
SoftBank Merger (Predecessor) and a successor period (Successor). The
Successor information represents Sprint Corporation, which includes the
activity and accounts of Sprint Communications, Inc. as of and for the
three-month periods ended June 30, 2014 and March 31, 2014. The accounts
and activity for the successor periods from October 5, 2012 (date of
inception) to December 31, 2012 and from January 1, 2013 to July 10,
2013 consist of the activity of Starburst II prior to the close of the
SoftBank Merger. The Predecessor information contained herein represents
the historical basis of presentation for Sprint Communications, Inc. for
all periods prior to the SoftBank Merger date on July 10, 2013. As a
result of the valuation of assets acquired and liabilities assumed at
fair value at the time of the SoftBank Merger and Clearwire Acquisition,
the financial statements for the successor period are presented on a
measurement basis different than the predecessor period, which was
Sprint Communication Inc.’s historical cost, and are, therefore, not
comparable.

In order to present financial results in a way that offers investors a
more meaningful calendar period-to-period comparison, we have combined
the current and prior year results of operations for the predecessor
with successor results of operations on an unaudited combined basis. The
combined information for the three-month period ended June 30, 2013 does
not purport to represent what our consolidated results of operations
would have been if the acquisition had occurred as of the beginning of
2013.

Sprint provides financial measures determined in accordance with GAAP
and adjusted GAAP (non-GAAP). The non-GAAP financial measures reflect
industry conventions, or standard measures of liquidity, profitability
or performance commonly used by the investment community for
comparability purposes. These measurements should be considered in
addition to, but not as a substitute for, financial information prepared
in accordance with GAAP. Other than the use of non-GAAP combined results
as described above, we have defined below each of the non-GAAP measures
we use, but these measures may not be synonymous to similar measurement
terms used by other companies.

Sprint provides reconciliations of these non-GAAP measures in its
financial reporting. Because Sprint does not predict special items that
might occur in the future, and our forecasts are developed at a level of
detail different than that used to prepare GAAP-based financial
measures, Sprint does not provide reconciliations to GAAP of its
forward-looking financial measures.

The measures used in this release include the following:

EBITDA is operating income/(loss) before depreciation and
amortization. Adjusted EBITDA is EBITDA excluding
severance, exit costs, and other special items. Adjusted EBITDA Margin
represents Adjusted EBITDA divided by non-equipment net operating
revenues for Wireless and Adjusted EBITDA divided by net operating
revenues for Wireline. We believe that Adjusted EBITDA and Adjusted
EBITDA Margin provide useful information to investors because they are
an indicator of the strength and performance of our ongoing business
operations, including our ability to fund discretionary spending such as
capital expenditures, spectrum acquisitions and other investments and
our ability to incur and service debt. While depreciation and
amortization are considered operating costs under GAAP, these expenses
primarily represent non-cash current period costs associated with the
use of long-lived tangible and definite-lived intangible assets.
Adjusted EBITDA and Adjusted EBITDA Margin are calculations commonly
used as a basis for investors, analysts and credit rating agencies to
evaluate and compare the periodic and future operating performance and
value of companies within the telecommunications industry.

Free Cash Flow is the cash provided by operating activities less
the cash used in investing activities other than short-term investments,
including changes in restricted cash, if any, and amounts included as
investments in Clearwire and Sprint Communications, Inc. during the
period, if applicable. We believe that Free Cash Flow provides useful
information to investors, analysts and our management about the cash
generated by our core operations after interest and dividends, if any,
and our ability to fund scheduled debt maturities and other financing
activities, including discretionary refinancing and retirement of debt
and purchase or sale of investments.

Net Debt is consolidated debt, including current maturities, less
cash and cash equivalents, short-term investments and, if any,
restricted cash. We believe that Net Debt provides useful information to
investors, analysts and credit rating agencies about the capacity of the
company to reduce the debt load and improve its capital structure.

SAFE HARBOR

This release includes “forward-looking statements” within the meaning of
the securities laws. The words “may,” “could,” “should,” “estimate,”
“project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,”
“target,” “plan,” “providing guidance,” and similar expressions are
intended to identify information that is not historical in nature. All
statements that address operating performance, events or developments
that we expect or anticipate will occur in the future — including
statements relating to our network, subscriber growth, and liquidity,
and statements expressing general views about future operating results —
are forward-looking statements. Forward-looking statements are estimates
and projections reflecting management’s judgment based on currently
available information and involve a number of risks and uncertainties
that could cause actual results to differ materially from those
suggested by the forward-looking statements. With respect to these
forward-looking statements, management has made assumptions regarding,
among other things, the ability to operationalize the anticipated
benefits from the SoftBank, Clearwire and U.S. Cellular transactions,
the development and deployment of new technologies; efficiencies and
cost savings of new technologies and services; customer and network
usage; customer growth and retention; service, speed, coverage and
quality; availability of devices; the timing of various events and the
economic environment. Sprint believes these forward-looking statements
are reasonable; however, you should not place undue reliance on
forward-looking statements, which are based on current expectations and
speak only as of the date when made. Sprint undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by law. In addition, forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to
differ materially from our company's historical experience and our
present expectations or projections. Factors that might cause such
differences include, but are not limited to, those discussed in Sprint
Corporation’s Transition Report on Form 10-K for the period ended March
31, 2014. You should understand that it is not possible to predict or
identify all such factors. Consequently, you should not consider any
such list to be a complete set of all potential risks or uncertainties.

About Sprint:

Sprint (NYSE:S) is a communications services company that creates more
and better ways to connect its customers to the things they care about
most. Sprint served more than 54 million customers as of June 30, 2014
and is widely recognized for developing, engineering and deploying
innovative technologies, including the first wireless 4G service from a
national carrier in the United States; leading no-contract brands
including Virgin Mobile USA, Boost Mobile, and Assurance Wireless;
instant national and international push-to-talk capabilities; and a
global Tier 1 Internet backbone. The American Customer Satisfaction
Index rated Sprint as the most improved U.S. company in customer
satisfaction, across all 43 industries, over the last six years. Sprint
has been named to the Dow Jones Sustainability Index (DJSI) North
America in 2011, 2012 and 2013. You can learn more and visit Sprint at www.sprint.com
or www.facebook.com/sprint
and www.twitter.com/sprint.